• Tony Xu, DoorDash’s CEO, Becomes a Driving Force in Food Delivery Consolidation
• DoorDash CEO Tony Xu has transformed the company from a scrappy campus startup into a nearly $90 billion powerhouse, positioning himself as a central figure in the consolidation of the global food delivery industry.
• Most recently, DoorDash acquired London-based Deliveroo for $3.9 billion and restaurant tech platform SevenRooms for $1.2 billion. These strategic deals mark a broader effort to expand both geographically and across product categories. “We’re a multi-product company now that’s operating on a global scale,” Xu told CNBC following the announcements.
• DoorDash also announced a $2.5 billion convertible debt offering, with proceeds partly earmarked for further acquisitions.
• From Stanford Startup to Market Leader
• Founded in 2013 while Xu was a student at Stanford, DoorDash took off by targeting underserved suburban markets, unlike competitors focused on urban centers. This strategic move proved advantageous when COVID-19 shuttered restaurants in 2020, triggering a surge in delivery demand. DoorDash’s revenue more than tripled that year and jumped another 69% in 2021.
• Despite net profits remaining slim more than four years after its IPO, DoorDash has become a darling on Wall Street—its stock is up 23% this year, outpacing the broader Nasdaq index.
• Xu has consistently prioritized long-term vision over short-term profits. During the early months of the pandemic, he proposed slashing commissions to support struggling restaurants—a move that cost the company over $100 million. “If restaurants don’t thrive, we cannot,” recalled Chief Business Officer Keith Yandell, who initially feared the impact on DoorDash’s IPO plans.
• Building by Acquisition
• DoorDash has a track record of using acquisitions to strengthen its market position. In 2019, it acquired Caviar from Square for $410 million. Two years later, it purchased international platform Wolt for $8.1 billion. The recent Deliveroo and SevenRooms deals mark a renewed push to scale both delivery and technology services.
• “We’re very picky, very patient, and conscious that, for most companies, deals don’t work out in hindsight,” DoorDash said in a statement. “When we see an opportunity that brings value to customers, empowers local economies, and offers long-term returns, we tend to push our chips in.”
• Still, some analysts remain cautious. Piper Sandler noted that integrating multiple acquisitions at once “may create some noise near-term.”
• The Founder’s Imprint
• Xu’s leadership style and values are deeply embedded in DoorDash’s culture. “His characteristics became the company’s values,” said Alfred Lin, an early investor and Sequoia Capital partner. Xu’s intense focus on operational excellence and customer satisfaction is legendary within the company.
• All employees, including Xu, are required to make deliveries and answer support calls annually through the “WeDash” program. Early employees remember Xu showing up to events in a beat-up green 2001 Honda Accord. Even now, he starts his mornings reviewing customer complaints and often ends his days with late-night calls to international teams.
• “He’s the best operational leader in the U.S. after Jeff Bezos,” said Gokul Rajaram, who joined DoorDash through its acquisition of Caviar.
• A Personal Journey of Grit
• Xu’s journey began in China and continued in Champaign, Illinois, after his family immigrated in 1989. He mowed lawns to save for a Nintendo and learned resilience watching his parents juggle multiple jobs—his mother eventually opened a medical clinic, while his father waited tables while earning a Ph.D.
• These early experiences gave Xu a deep appreciation for small businesses, which proved vital in DoorDash’s early days as he worked to bring restaurants onto the platform. His hands-on, mission-driven approach continues to resonate with partners.
• “He really is one of those people you can count on,” said Mistie Boulton, co-owner of Oren’s Hummus, one of DoorDash’s first restaurant clients.
• A Relentless Vision
• Colleagues describe Xu as someone who sees potential where others don’t. He encouraged Jessica Lachs, now DoorDash’s chief analytics officer, to pursue data work. He also pushed VP of Ads Toby Espinosa to “work 10 times harder” after an early failure, which later turned into a major partnership win.
• Even the company’s first pitch failed to attract venture capital on Demo Day at Y Combinator. But seed investors like Gmail creator Paul Buchheit saw promise in the team. “You had a talented team working on what I thought was an idea that had potential,” he said. “That’s the formula for a good startup.”
• Looking Forward
• Wall Street is watching closely as Xu steers DoorDash into its next chapter. With over $10 billion in global delivery orders and bold bets on international expansion and new tech verticals, he’s not just building a delivery app—he’s reshaping the future of on-demand commerce.
